Difficulty getting loan for foreclosed condo with no HOA
We are in the process of purchasing a foreclosed condo which is a second home/ vacation property for us. The condo development is 8 units and the development was foreclosed by the builder. All of the units have been sold and we purchased the last one. To date, the bank is still in charge of the HOA and the homeowners have not taken over. Due to the fact that there is no current HOA in place, we are unable to get a conventional loan and have to get financing through a local bank that is a balloon with a high interest rate and high closing costs. Has anyone else been in this situation? Any suggestions or are our hands tied? We are hoping to refinance once the HOA is established, but then we have to pay closing costs again.